Commentary

Recommendation

The Government Administration Committee has examined the Parental Leave and Employment Protection (Six Months’ Paid Leave and Work Contact Hours) Amendment Bill. The committee is unable to agree on whether the bill should be passed. Should the House decide to progress the bill, we recommend that the amendments we discuss, as set out in the attached version of the bill, be incorporated.

Introduction

This is a member’s bill in the name of Sue Moroney. It seeks to extend the period of paid parental leave from 16 to 26 weeks. The bill also provides for “work contact hours”. Work contact hours would allow recipients of paid parental leave to return to work for a limited amount of time, without losing their entitlement to paid leave.

Updating implementation dates

The bill as introduced seeks to increase paid parental leave in two phases. Part 1 of the bill, which would increase paid leave to 22 weeks, would come into effect on 1 April 2016. Part 2 would increase paid leave to 26 weeks, effective from 1 April 2018.

The date for implementation of Part 1 has now passed. Thus we recommend amending clause 2(1) to change the date to 1 April 2017.

Work contact hours

The bill as introduced provides for work contact hours. However, on 17 March 2016 the Parental Leave and Employment Protection Amendment Act 2016 received Royal assent. That legislation provides for “keeping in touch days”, which are comparable to the work contact hours set out in this bill. Given the similarity, we recommend deleting all clauses that propose to implement the work contact hours.

Changing current paid parental leave weeks

As introduced, the bill would extend the period of paid parental leave from 16 to 26 weeks. However, since its introduction, a number of amendments have been made to the principal Act, including changes to increase the amount of paid parental leave to 18 weeks. We recommend amending all mentions of 16 weeks in the bill to 18 weeks, and aligning the clauses of the bill with the recent changes to sections in the principal Act.

Appendix

Committee process

The Parental Leave and Employment Protection (Six Months’ Paid Leave and Work Contact Hours) Amendment Bill was referred to the committee on 16 September 2015. The closing date for submissions was 6 November 2015. We received and considered 6,755 submissions (including 5,129 form submissions and 1,626 individual submissions) from interested groups and individuals. We heard from 25 submitters. We received advice from the Ministry of Business, Innovation and Employment.

Committee membership

Hon Ruth Dyson (Chairperson)

Kris Faafoi

Paul Foster-Bell

Brett Hudson

Mojo Mathers

Mark Mitchell

Sue Moroney replaced Kris Faafoi for this item of business.

Denise Roche replaced Mojo Mathers for this item of business.

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11 Section 45 amended (Early ending and extension of parental leave)

12Section 56 amended (Parental leave complaints)

In section 56(1)﻿(c), after “payment”, insert “or work contact hours under sections 71HA to 71HC”.

13 Section 71A amended (Purpose)

In section 71A(a), replace “1618 weeks” with “22 weeks”.

14New sections 71HA to 71HC and cross-heading inserted

After section 71H, insert:

Work contact hours

71HAWork contact hours during parental leave

(1)

An employee on 22 week paid parental leave or on extended leave may work, upon fair agreement between the employee and the employer, the following work contact hours:

(a)

up to 42 hours in the 22 week paid parental leave period:

(b)

up to 156 hours in the 52 week period which includes the unpaid parental leave period.

(2)

An employer whose employee works any work contact hours must, by fair agreement with the employee, —

(a)

pay the employee for the hours worked,—

(i)

at the hourly rate paid to the employee before he or she took up parental leave; and

(ii)

in the pay period or pay periods during which, or immediately after, the hours are worked; or

(b)

give the employee leave, as time in lieu of the work contact hours, after the employee returns to work.

(3)

Despite section 71Q, payments (including for time in lieu) made under subsection (2) must not come out of public money appropriated for expenditure in providing parental leave payments.

(4)

Payment made, or leave given as time in lieu, under subsection (2) is in addition to, and not instead of, any parental leave payment to which the employee is entitled under Part 7A.

(5)

Nothing in this section requires an employee to work during the period when he or she is on parental leave.

71HBEffect of working for work contact hours

(1)

An employee who works any work contact hours is not regarded as having returned to work from parental leave by reason only of undertaking those hours of work.

(2)

Any work contact hours worked do not extend any period of parental leave.

71HCTransfer of work contact hours

To the extent that a person transfers all or part of his or her entitlement to parental leave payments to his or her spouse or partner under section 71E, the spouse or partner is entitled to work any work contact hours to the extent that the person would have been entitled to them had the transfer not been made.